... Data:
Wolfinger, Mark D.
Create your own hedge fund : increase profits and reduce risk with ETFs and
options / Mark Wolfinger.
p. cm. — (Wiley trading series)
Includes bibliographical references and index.
ISBN ...
Betty and Khiva Wolfinger. They would have loved to see
their son become an author.
4339_P FM.qxd 11/19/04 12:14 PM Page v
Create
Your Own
He...
... Vanguard 50 0 Index Fund costs investors 18 cents per year, per
$100 invested, compared with $1. 25 per $100 investment for the average ac-
tively managed mutual fund.
12
14 CREATE YOUR OWN HEDGE FUND
4339_PART1.qxd ... the world of hedge funds.
Consider these facts: Operating a hedge fund can be very lucrative;
many public investors are searching for hedge funds; h...
... has options with strike prices of 35, 40, and 45. If the stock trades as
high as 45, the 50 calls and 50 puts are listed the following day. If the stock
trades as low as 35, then the 30 calls and ... expire, the company announces that earnings
74
CREATE YOUR OWN HEDGE FUND
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Comparing Stock Ownership with Call Ownership
Table 9.1 c...
... must call your
146 CREATE YOUR OWN HEDGE FUND
4339_PART4.qxd 11/17/04 12 :57 PM Page 146
152 CREATE YOUR OWN HEDGE FUND
As predicted by the futures, the market opened calmly this morning
and I had ... $ 85, 734.00 $13 ,58 0.00
(50 8 .50 ) –0 .51 %
Cash Start
$2,218 .50
Cash End
$ 15, 798 .50
Beginning Account Value
$102,041.00
Ending Account Value
$101 ,53 2 .50...
... better than the market
10
CREATE YOUR OWN HEDGE FUND
4339_PART1.qxd 11/17/04 1:01 PM Page 10
Create
Your Own
Hedge
Fund
Increase Profits and
Reduce Risk with ETFs
and Options
MARK D. WOLFINGER
John ... misconception, and you’ll learn to use options to both re-
duce risk and enhance profits.
By combining these two tools into one investment methodolo...